Location: Pottawatomie County, OK | Metro: Oklahoma City, OK HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $164,881 | 0.84% | C |
| 3BR | $1,880 | $285,965 | 0.66% | D |
| 4BR | $2,110 | $381,577 | 0.55% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 74857 (Newalla, OK) presents a nuanced picture for both landlords and small-portfolio investors. With a median home value at $275,283, the area reflects a stable housing market where property values have remained consistent. The fact that only 0.3% of listings have reduced their asking prices indicates a strong seller's market, suggesting that homeowners have significant pricing power. This is further supported by the non-available median days on market (DOM), which implies that homes are selling quickly, often before reaching the typical DOM threshold.
On the rental side, the Federal Market Rent (FMR) for ZIP 74857 in fiscal year 2024 is set at $990. However, the current market rent, according to Census ACS data, stands at $1,124. This discrepancy signals that landlords can maintain higher rents relative to government standards, providing an opportunity to generate above-average returns. The gap between FMR and market rent suggests a resilient local economy capable of supporting higher rental costs.
For long-term investors, the data implies a cautious approach to appreciation expectations. While the strong seller's market and quick sales indicate healthy demand, the slight reduction in listing prices and the limited historical context provided by the DOM data point to a potentially saturated market. This saturation could limit future price increases, making it difficult to rely on substantial property value appreciation over the next 12-24 months. Instead, investors should focus on the steady rental income and the potential for modest growth in property values.
In summary, ZIP 74857 offers a balanced environment for real estate investment. Landlords benefit from a robust rental market, while small-portfolio investors must consider the limitations posed by a nearly saturated housing market. The setup suggests a focus on current income generation rather than rapid capital appreciation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.